Definition “Effective Rake”:
A winning player might exchange 5USD on site A with an a roi of 5%.
The same player deposits 5USD on site B with an roi of 4%
We say that the “effective rake” on site B is higher than site A.
The profitability in terms of “effective rake” is hidden on every site by many contributing factors. The most significant are the make-up of the player field (winning players vs depositing players), and the winning distributions. These factors are not definable for the players community.
Players cannot accurately assess the value of their money in exchange for chips on each given site (effective rake), and they do not have the ability to exercise their dissatisfaction so they are left with no “pull” in the industry.
If players could accurately define the effective rake of each site AND have the option to transfer their bankrolls between sites, this would cause pressure on sites to offer a superior product.
The players community creates a digital poker coin, and encourages each other and other major entities in the industry to accept and adopt this coin for the various daily goods services and transactions they provide.
Why this works:
Adam Smith, FA Hayek and John Nash, explained extensively that the only way to truly and accurately assess the value of something is to put it on a free market exchange. By forcing sites to adopt digital currency technology, the players will be able to properly evaluate effective rake on each site while simultaneously gaining the ability to exercise this option on a free market (decentralized digital asset exchange). This will pressure sites to offer a product of superior value.
Won’t sites oppose or create their own coin?
Yes we want them to, those that participate will be favored and trusted by the players, those that don’t will lose out. Those that adopt crypto currency reap the benefits of near instant and near fee-less transactions and players’ trust. There are many sites already today that use crypto, and many that are looking for a way to capitalize on current major player and monopoly “inefficiencies”.